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"We serve a wide range of investors with different needs, and now they have one more affordable way to gain exposure to the U.S. market through an index with a 26-year track record – at a great value"

SAN FRANCISCO--(BUSINESS WIRE)--Charles Schwab Investment Management (CSIM), an asset management arm of
The Charles Schwab Corporation, today announced it is launching the
Schwab 1000 Index ETF (SCHK) – a new low-cost way to gain exposure to
the potential growth of America’s largest 1,000 stocks. The new ETF will
begin trading on October 11, 2017, and will be immediately available
through Schwab’s commission-free ETF program – Schwab ETF OneSource™.1

“Index investing is a fantastic way to build the core holdings of an
investment portfolio. Companies are made to grow, and we launched the
Schwab 1000 Index and mutual fund in 1991 to help investors participate
in the innovation and long-term growth of the largest 1,000 stocks in
the U.S. in a simple and cost-effective way,” said Schwab founder and
chairman Charles Schwab. “I’m thrilled that investors can now benefit
from the potential growth of these firms with the ease and efficiency of
a low-cost ETF.”

With an operating expense ratio (OER) of five basis points (0.05%), the
Schwab 1000 Index ETF offers broad U.S. market exposure at a low cost
that is one-half to one-third the expense of other widely recognized
ETFs tracking the largest 1,000 U.S. stocks.

“We are thrilled to introduce investors to the Schwab 1000 Index ETF,
the newest product in our family of low-cost, foundational index funds,”
said Marie Chandoha, president and chief executive officer of Charles
Schwab Investment Management. “We serve a wide range of investors with
different needs, and now they have one more affordable way to gain
exposure to the U.S. market through an index with a 26-year track record
– at a great value,” Chandoha said.

History of the Schwab 1000 Index and Schwab 1000 Index Mutual Fund

A leader in investment management, Schwab’s history as an indexer began
in 1991 when company founder and chairman Charles Schwab spearheaded the
launch of the Schwab 1000 Index and the mutual fund that tracks it, the
Schwab 1000 Index® Fund (SNXFX). The flagship Schwab 1000 Index includes
the 1,000 largest stocks of publicly traded companies in the U.S.,
providing exposure to U.S. large- and mid-cap stocks. The index is
designed to offer exposure to 100% of the U.S. large-cap space and 90%
of the entire U.S. equity market. With a 26-year track record, the index
has outperformed the S&P 500 index, on an annualized basis, since its
inception. The mutual fund has $7.5 billion in assets as of 9/30/2017
and has an operating expense ratio of five basis points (0.05%), with no
investment minimums.

Founded in 1989, Charles Schwab Investment Management, Inc., a
subsidiary of The Charles Schwab Corporation, is one of the nation’s
largest asset management companies, with more than $320 billion in
assets under management as of 6/30/17. It is also the third largest
provider of index mutual funds and the fifth largest provider of ETFs*.

*Source: Strategic Insight, as of 6/30/17; based on assets under
management.

About Charles Schwab

At Schwab, we believe in the power of investing to help individuals
create a better tomorrow. We have a history of challenging the status
quo in our industry, innovating in ways that benefit investors and the
advisors and employers who serve them, and championing our clients’
goals with passion and integrity.

1Conditions Apply: Trades in ETFs available through Schwab
ETF OneSource™ (including Schwab ETFs™) are available without
commissions when placed online in a Schwab account. Service charges
apply for trade orders placed through a broker ($25) or by automated
phone ($5). An exchange processing fee applies to sell transactions.
Certain types of Schwab ETF OneSource transactions are not eligible for
the commission waiver, such as short sells and buys to cover (not
including Schwab ETFs). Schwab reserves the right to change the ETFs it
makes available without commissions. All ETFs are subject to management
fees and expenses. Please see pricing guide for additional information.

Investors should consider carefully information contained in the
prospectus, or if available, the summary prospectus, including
investment objectives, risks, charges and expenses. You can request a
prospectus by visiting schwabfunds.com/prospectus. Please read it
carefully before investing.

Investment returns and principal value will fluctuate and are subject to
market volatility, so that an investor’s shares, when redeemed or sold,
may be worth more or less than their original cost. Unlike mutual funds,
shares of ETFs are not individually redeemable directly with the ETF.
Shares of ETFs are bought and sold at market price, which may be higher
or lower than the net asset value (NAV). Brokerage commissions will
reduce returns.

The Schwab 1000 Index may hold more or less than 1,000 stocks due to
corporate actions and/or application of market cap breakpoints and
buffers.

Charles Schwab Investment Management, Inc. (CSIM) is the investment
adviser for Schwab ETFs and Schwab Funds. Schwab ETFs are distributed by
SEI Investments Distribution Co. (SIDCO). Schwab Funds are distributed
by Charles Schwab & Co., Inc. (Schwab) Member SIPC. CSIM and Schwab are
affiliates and are subsidiaries of The Charles Schwab Corporation. SIDCO
is not affiliated with CSIM or Schwab.